The counties are staring at a financial crunch from July 1, following a standoff in Parliament over a key revenue-sharing law.
The Division of Revenue Bill, 2017 unlocks the sharing of revenue between the national government and counties.
It is yet to be enacted by both Houses. With the clock ticking towards the dissolution of Parliament on June 15, the counties hope the National Assembly and the Senate pass the law before the House adjourns for the August 8 election. This means MPs have about 38 days left — 13 sitting days — to fast-track the enactment of the legislation. The Senate is currently on recess and will resume sittings from June 13, with only three days to hold sessions in the life of the current 11th Parliament.
INCREASE COUNTY FUNDS
Both Houses of Parliament must pass the Division of Revenue Bill and the President assent to it. The Senate had proposed that allocation to the counties be increased from the Sh323 billion approved by the National Assembly to Sh352 billion, resulting in a Sh29 billion standoff.
But the National Assembly went ahead to pass the Appropriations Bill, which allows the expenditure at the national level, despite the Division of Revenue Bill being at the mediation stage over the Sh29 billion increment.
In what complicated matters further, President Uhuru Kenyatta assented to the Appropriations Bill, 2017, giving authority to the Treasury to start drawing its share of the revenue from the national granary.
equitable allocation
Consequently, the Senate cannot legislate on the County Allocation of Revenue Bill, 2017, that spells out the equitable allocation of revenue among the 47 counties.
A fresh bill must be published to unlock the impasse. Yesterday, Speaker of the National Assembly Justin Muturi said the budget and appropriations committee will have to issue a fresh bill after the current one was defeated at the mediation stage.
“After that, the House may engage in other processes. Matters including waiver in timeliness in the processing of the bill can only be discussed once the bill has been published,” he told the Mutava Musyimi-led committee.
Muturi warned that the counties could ground to a halt unless MPs move with speed to pass the DoR Bill and County Allocation of Revenue Bill.
Musyimi, also the Mbeere South MP, said, “My committee will do the needful to make sure the counties are not paralysed.” The Senate Finance Committee chaired by Mandera Senator Billow Kerrow blamed the National Assembly team led by Musyimi for causing the crisis after they went against the provisions of the Constitution.